Return Check After Funds Are Escheated?

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Question:

When a cashier's check has been outstanding for more than three years, the funds are escheated to the State as unclaimed property. A stop pay is placed on the account to catch the check if it comes through. If one of these checks were to present after the funds are escheated, are we right in returning it, even though it is supposed to be guaranteed funds?

Answer:

State law will inform your decision. You may have an option to pay the item and reclaim the funds from the state, or to refuse payment and direct the holder of the check to the state's unclaimed property office for payment.

First published on BankersOnline.com 11/26/12